The fledgling Texas Stock Exchange (TXSE) has captured its first primary equity market listings from the New York Stock Exchange (NYSE), a major development in its challenge to established trading venues. Three entities, Energy Transfer, USA Compression, and Sunoco, will shift their primary listings to the TXSE in early October. These companies have a combined market capitalization of nearly $100 billion, according to TXSE Chairman and CEO James Lee. This move represents a significant victory for the TXSE, as it marks the beginning of companies moving their primary listings out of New York and into Texas.
Pipeline giant Energy Transfer LP, along with its affiliates, is leading this shift. Energy Transfer expects its shares to begin trading through the TXSE on October 5. This decision aligns with the company's "Texas-based legacy with TXSE's technology-driven platform." Kelcy Warren, CEO of Energy Transfer LP, also holds a 30% stake in TXSE Group, the stock exchange's parent company.
This development is seen by TXSE Chairman and CEO James Lee as a "watershed moment for capital markets," indicating a potential larger trend that could reshape the U.S. listings landscape and establish Texas as a global capital markets leader. The NYSE and Nasdaq have historically held a near duopoly on stock listings, making even a single corporate listing win by TXSE a major event. In response to TXSE's emergence, the NYSE and Nasdaq had previously launched their own NYSE Texas and Nasdaq Texas initiatives. Prior to these primary listings, TXSE had mainly seen dual-listings, where companies traded on TXSE while retaining their primary listing on NYSE or Nasdaq.
This move also highlights Texas's efforts to enhance its business-friendly environment, including the establishment of the Texas Business Court in 2023 for complex business disputes. Companies, such as ExxonMobil which moved its home from New Jersey to Texas, are re-evaluating their headquarters, legal domiciles, and listing locations, with Texas offering a complete business ecosystem with advantages across all three.
